Are you considering a move to Poland? If so, you might be eligible for a significant tax break known as the Return Tax Relief. This Polish government incentive is designed to encourage skilled professionals and individuals to relocate to Poland, even if they have never lived in Poland before. 

What is the Return Tax Relief?

The Return Tax Relief is a tax exemption that allows you to exclude up to 85,528 PLN of your annual income from taxation for a period of four years after you become a Polish tax resident. This exemption applies to various income sources, including:

• Employment income: Salaries from full-time jobs, contracts of mandate (umowa zlecenie), and more.
• Business income: Profits from self-employment, but excluding certain activities like managing businesses or holding executive positions.

Who is Eligible?

To qualify for the Return Tax Relief, you must meet several criteria:

• Residency: You must have been a non-resident of Poland for at least three years before moving back.
• Citizenship: You must be a Polish citizen, a cardholder of the Polish Card (Karta Polaka), or a citizen of an EU/EEA country, Switzerland, Australia, Chile, Israel, Japan, Canada, Mexico, New Zealand, South Korea, the UK, or the USA.
• Tax residency: You must have been a tax resident in one of the eligible countries for at least three years or in Poland for at least five years before the three-year non-residency period.
• No prior use: You cannot have claimed this tax break previously.

 

How to Apply for the Return Tax Relief

To claim the Return Tax Relief, you’ll need to follow these steps:

1. Tick the appropriate box: When filing your annual tax return, make sure to check the box indicating that you wish to claim the Return Tax Relief.
2. File a correction (if necessary): If you’ve already filed your tax return without claiming the relief, you can submit a correction to claim the overpaid tax.
3. Provide proof of residency: In some cases, the tax office may request additional documentation to verify your residency abroad. While this is usually a straightforward process, it’s advisable to have your documents ready.

Sarego Finance can assist you with:

• Understanding your eligibility: Our experts can assess your specific circumstances and determine if you qualify for the tax break.
• Preparing the necessary documentation: We will help you gather all the required documents and ensure they are in the correct format.
• Filing your tax return: Our team will accurately complete your tax return, maximizing your tax benefits.

Don’t miss out on this valuable tax benefit. Contact Sarego Finance today to learn more about how we can help you take advantage of the Return Tax Relief.

Author:

Jerzy Gaweł
Partner – Tax Advisor